Mumbai: With the yellow metal taking a hit after the Federal Reserve hiked its interest rate, the World Gold Council (WGC) on Friday claimed that Asian markets, particularly India and China, will lead the improvement in the gold market in 2016.
Alistair Hewitt, head of market intelligence for the WGC, who said 2015 has been a fascinating year for the gold market, predicts that “The pro-gold schemes introduced by the Indian government and the further internationalisation of the renminbi alongside the increasing transparency of Chinese gold reserves will continue to improve the market next year,” he predicted.
On the impact of Fed rate hike on gold, he says “Whilst the dollar price is one driver of gold demand it is not always the most relevant factor for most investors. Physical demand for gold is truly global — more than 90 per cent comes from outside the US, primarily the Asian economies — particularly China and India and in these economies local price matters most.”
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